Shari’ah perspective on business opportunities : sharing profit after expenses that include a partner’s salary

Fatawa Question

Assalamu alaikum brother, I am Br. Parvez form Mauritius. Please advise me on an investment proposal from one friend. The situation is like this : My friend (A) markets the product (garments) of a factory (B). He has a fixed price from B based on quantity ordered. However, B will only start production when A confirms the order and makes advance payment. Now A finds a client (C) and takes his confirmed order but he will receive payment only after delivery. He has no money to payment B. I contribute the finance to pay B to start production and enter a contract with A that after allowing all expenses (including his salary) we share profit 50-50. There is practically no loss as we already know our buying and selling price. I want to know if the contract with A is Halal and if there is anything in this business type that is not compatible with Sharia. Please advise brother as I have to make a decision. Jazakumullah, Wassalam.

Fatwa

Click hereto view more

Publication Date

2013-01-24

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-732122

• APA
• MLA
• AMA